Offshore Tech Team Employment: Everything You Need to Know

Constant identifying of the new streamlining methods is an integral part of every business. Global digitalization has drastically changed the way of companies performance as well as cooperation, making remote partnerships serve as a way to get services of flawless quality at adequate costs. Due to this fact, many companies select offshore software architecture teams aiming at the maximum profit from their employment. 

This post will disclose the details and peculiarities concerning the offshore IT experts’ partnership, as well as the best countries to choose vendors from. 

Key Benefits of Hiring Offshore Tech Experts

Put it in brief, cooperation with offshore IT partners implies the software architecture flow or certain assignments taken over by the remote team. Distant cooperation allows selecting vendors all around the world, regardless of the customer’s current situation. The time-to-market, as well as development expenses, considerably decrease with this cooperation model. 

To prove the demand for such services, we may observe the recent insights. Due to a recent report, the market value of outsourcing was equal to $245.91 billion in 2021 and is projected to amount to $261.9 billion in the current year.

Apart from this, tech outsourcing is forecasted to considerably grow its profitability within the following two years. Due to the wide usage, more and more tech companies offer such services, progressing the entire market sector. 

Cost Savings and Resource Efficiency

According to statistics, 38% of companies miscarry because of insufficient money contributions. When applying to an offshore partner, this issue is overcome as you are free of regular payrolls, monthly rental fees, soft as well as hardware purchasing for the proper team functioning. You are able to adopt the most suitable option from a range of partnership models, providing the opportunity to save even more financial resources. 

In addition, there’s no need to conduct numerous tiring interviews to check the potential employees' essential hard and soft set of skills, as well as conduct an onboarding process- the complete qualified team is assembled to start cooperating with you. 

Access to Specialized Skill Sets 

Fresh insights from Forbes have revealed that lack of expertise is a global challenge that is expected to rise to 85.2 million within the upcoming 7 years. The challenge is much more complex than might seem at first glance- market players should be ready to be out-of-pocket by approximately $8.4 trillion. However, the opportunity to Hire a Remote Team of certified professionals (which is the definition of offshore teams) with solid domain expertise, such as telehealth, e-commerce, travel, etc., is a way to handle this situation. 

Enhanced Flexibility for Scaling Teams

No other cooperation variant ensures such a high level of scalability and flexibility. You are charged exceptionally for the scope of tasks executed and are able to extend or reduce the current team composition. In case you need to augment the current expertise or the number of specialists for more sophisticated projects, there’s also no issue with scaling up and down when required. And this fact is proven by 24% of newly-established entities that have stated that the delegation of tasks possible with offshore vendors’ services has considerably progressed their productivity while the state of their active development. 

Leveraging Cutting-Edge Technologies

The market of offshore software development goes hand in hand with the booming technology adoption. When going for cooperation with such partners, you can be sure that they are knowledgeable about the freshest solutions’ implementation as well as product completion approaches. Expertise in dynamic market trends and tendencies results in decreased time and, consequently, financial investments necessary for project fulfilment. 

Top Offshore Destinations for Tech Talent

The global pool of tech specialists is enormous- that’s why it would be wise to diversify the regions by certain indicators to understand which one is suitable for you since every destination has its peculiarities. Let’s single out such characteristics together and outline the average rate set for the one hour of work:

Tech Talent in Central and Northern Europe

This on-demand destination for offshore cooperation is full of specialists with excellent tech expertise. To illustrate, Estonia is a pretty decent hub to start looking for software engineers. This is also conditioned by adequate hourly costs that amount to roughly $25-50.

 Why is Estonia that beneficial? Here are the critical reasons that condition this fact:

• An enormous pool of certified tech-savvy employees with a great focus on the particular industry
• Expertise in the latest solutions’ implementation will substantially raise the competitiveness of your product
• Perfect English knowledge helps establish fruitful communication between the vendor and the customer
• Remote partnership and high accessibility assist Estonian IT specialists in delivering brilliant performance even within the global restrictions brought by the COVID-19 

A prevalent part of other regions requires wages raised up to $100.

IT Expertise in Western Europe

This region is primarily sought-after for the huge corporations located in the same area. Thus, clients of software creation providers from this region are mainly from the same region or the adjacent ones. Costs required to cooperate with offshore vendors are substantially higher, amounting to about $50-200. 

Asia’s Growing Offshore Tech Market

Enhanced cost-efficiency and a sufficient number of IT professionals to choose from making this country a great option for cooperation. What about rates per hour- they start from $20 and vary till $45. 

South America's Emerging Tech Hubs

When talking about this location, it is worth mentioning that offshore services there primarily engage transborder entities. This fact is motivated by both excellent accessibility and insignificant distinction of time zones. Adequate prices ($35-50) for high-quality services make this region highly attractive for many businesses. 

The key aspect of paying attention to is the cultural peculiarities as well as the gap in time between you and your potential offshore partner. Besides, insufficient language expertise may result in poor connection, comprehension, and perception within the working environment, which may decrease the product’s quality. 

Step-by-Step Guide to Hiring Offshore Developers

It would be useful for future cooperation to get acquainted with the gradual guide on how the partnership with offshore IT experts is concluded and performed. Let’s consider each phase a little bit closer:

Define Your Project Goals and Objectives

From the start, you should describe the purposes and objectives of the project. What are the great challenges to be handled with the solutions driven by your software? Besides, the vital point to overcome your competitors is to prioritize the requirements of the audience the product aims at. It’s crucial to get acquainted with ever-changing user demands and issues to provide them with an efficient tool that will make your product highly demanded. 

What’s more, you should explore the current market and detect the most prosperous illustrations of the products that are based on an idea similar to yours. Prominent concepts may inspire you to enhance your project and determine which functionality is indispensable in the eyes of the final consumers. 

After that, you should think over such aspects and details as the solutions to maintain connectivity within the workflow of you and your offshore software architecture provider, progress reports, etc. 

Identify Key Skills for Your Tech Project

The list of features to implement is defined by the domain, aims, and purposes of the product. In its turn, the key functionality helps pick the appropriate kit of technical instruments. Competent vendors will consult you on this aspect to find the most optimal solution for the software implementation. Yet, in case some of your potential partners miss the specialization obligatory for your project, you will be able to exclude them and sort out the most relevant option very quickly. 

Shortlist and Evaluate Potential Providers

To draw up appropriate options to choose from, you should start searching for the offshore tech team applying such a reliable platform as Clutch. In addition, GoodFirms is also an excellent assistant for selecting partners. 

During the initial exploration, you should remember that the provider’s scale and expertise are the two parallel aspects since the modern market is full of offers from moderate-scale yet, qualified offshore teams at reasonable prices, delivering excellent value for money. 

Delve deeper into the following details to find the best partner:

• Feedback from the previous customers: Get acquainted with the opinions on the cooperation with the potential partner’s clients, the cooperation process, services’ quality, and other details. The credible resources mentioned above comprise exceptionally verified reviews so that you may use them without any worries. 
• Accomplished projects: Take a look at the candidates' portfolios and detect the ones that have experience in your business’s domain. This will significantly optimize the workflow. 
• Achievements: The trustworthiness of offshore partners may also be checked by the certifications and premiums they possess. 
• Road map and approaches: Another impacting factor is to find the most suitable project completion methodology for your specific case and use it as a filter for the employment of a proper offshore tech provider.  
• Non-disclosure agreement: To protect your project concept, you should also ask the candidates you have whether they sign such a document, as it guarantees solid security for your unique idea. 
• Personal traits: To conclude a successful, productive, and long-term (if the project requires) partnership, you should check the set of soft skills as they determine the behavior patterns of the tech team’s members. 

Here’s the list of tools for swift and handy searching of all the offshore companies’ offers around the world:

• Clutch
• Glassdoor
• GoodFirms
• IT Firms

Effective Communication and Negotiation

Filter the most suitable options and conduct a remote call where you discuss your project case and methods of its realisation. Focus on the problem-solving approach from the side of the team and perfect communication. Then, make a final decision on concluding a partnership. 

Choosing the Right Offshore Engagement Model

Each project requires a diverse partnership flow. It’s time to consider the existing models and conditions under which the cooperation happens and define the one relevant for your case:

Benefits of Time and Material Model

Utmost flexibility towards dynamic project requirements and undefined scope of work is the key feature of this option. The client invests in the accomplished tasks, the amount of which may scale up and down within the cooperation, making all the workflow clear. Such a model can’t be performed well without a deep engagement of the customer. Furthermore, changing requirements may also impact the project deployment dates. 

Advantages of a Dedicated Team Approach

With this model, you are able to successfully fill in the missing specialization necessary for your project and expand the architecture opportunities. The employment process happens much faster, providing you with certified tech engineers you have full control over. Onboarding, as well as organization-related challenges here, lay on your shoulders. 

When to Opt for a Fixed-Price Model

The name of the option tells its own tale- the project requirements are negotiated from the beginning of the cooperation and stay fixed, the same as the final cost. This option is mainly used by startups and newcomers. To set the static demands, it is obligatory to conduct a prolonged preparation stage and thoroughly describe all the details. 

Common Challenges When Working with Offshore Teams

A remote partnership is a pretty complex process where a wide range of problems may arise. Let’s list which of them you may face:

• Diverse time zones: Connection, productivity, and accessibility are all influenced by this factor. That’s why it would be beneficial to choose partners who will adjust to your schedule and plan the calls onward. 
• Insufficient language knowledge: Connection is an indispensable factor for successful project completion, and it may damage the quality of outcome due to poor quality of communication. 
• Live interactions: Far placement eliminates the opportunity to cooperate as in-house teams, so it may be challenging to keep up with the project implementation progress. However, there are already lots of tools allowing clients to track the development flow. 
• Originality protection: It may be dangerous to describe and provide details of your software concept to the full tech team. The contract discussed above may increase the safety level. 

Final Thoughts on Offshore Tech Employment

The selection and employment of offshore tech engineers is a pretty complicated and multi-step process. In case you pay enough attention to details like rates, reviews, and the company’s reputation, a predominant number of issues will already be handled.